PHILADELPHIA –– A Pennsylvania woman settled a class action lawsuit against Ambit Energy in a dispute over fees earlier this month.
Ambit Energy agreed to pay $9.3 million to the plaintiff, Amy Silvis, and others in the class action. Silvis herself will receive $5,000 as lead plaintiff, while her attorneys will get up to $1.4 million in attorneys fees.
Kohn, Swift & Graf, P.C., and Marcus & Mack, P.C. are lead counsel for the plaintiffs.
Judge Eduardo C. Robreno of the U.S. District Court for the Eastern District of Pennsylvania approved the settlement on Aug. 16.
Silvis claims she switched from her local energy provider and sign with Ambit Energy "after being enticed with attractive rates." The suit claims after a short time the "teaser rate" was replaced by Ambit to a variable rate the company claimed was, "based on energy and capacity markets, plus all applicable taxes."
After a year, Silvis says, the rates from Ambit were double her local energy provider.
In August 2014, she initiated a class action lawsuit against Ambit Energy for breach of contract. Silvis claimed the company "breached her electricity contract and the covenant of good faith and fair dealing by using non-disclosed factors to increase its energy prices."
Under the settlement agreement, Ambit Energy will reimburse those in its select variable plans. Those customers enrolled between 2011 and January 12, 2014, will receive a check in the amount of 15 percent of all amounts paid. Customers who enrolled between January 13, 2014, and the settlement date will receive 2 percent.
More than 73,000 customers were sent notices about the class action lawsuit. Of those, more than 12,500 filed claim forms.